Government accused of draconian treatment of asylum seekers

The government was accused yesterday of draconian treatment of asylum seekers, using "destitution as a tool of coercion", in a bleak report from the Church of England on a Britain where an economic boom has left the gulf between the very poor and the super-rich wider than ever.

The Archbishop of York, John Sentamu, a member of the Commission on Urban Life and Faith, cited reports of the weekend's eve of World Cup party thrown by David and Victoria Beckham, reputed to have cost £2m, as an example of the chasm between the lives of the rich and poor.

"I'm one for joy, I'm one for partying, and I love football," he said at the launch of the report. "I'm glad that the party was for charity - but I still question whether it wouldn't have been possible to throw a party to achieve those ends which didn't cost that much."

The report paints a portrait of an anxious, unhappy country, where the poor are relatively poorer and wealth has not made the rich happy, a country where many feel fearful of strangers and alienated from the decision-making process.

It urges the government to replace the minimum wage with a minimum standard of living, meaning the poorest would earn more or receive higher benefits in more expensive areas.

The most savage criticism was of the treatment of asylum seekers. "The government must lead rather than follow public opinion on immigration, refugee and asylum policy. Specifically, asylum seekers should be allowed to sustain themselves and contribute to society through paid work. It is unaccceptable to use destitution as a tool of coercion when dealing with 'refused' asylum seekers."

The commissioners, who included Muslim and Jewish representatives and members of all the main Christian churches, spent two years taking evidence from all over the country. They found "endemic antipathy and racism" among many young people, leaving them vulnerable to exploitation by extremists.

Dr Sentamu asked: "Why is it that young people in Britain, the fourth largest economy in the world, are the most depressed in Europe? That question demands an answer."

He gave credit to the Labour government for trying to address deprivation and inequality, but added: "I do think they could have gone much further and been much bolder".

The report lacks the overt ferocity of the earlier one which, 21 years ago, in the wake of the Scarman report on inner city riots, led the then Conservative government to damn it as "Marxist".

However, it finds that decades of economic growth, and billions invested in inner cities, have done nothing to redress glaring inequalities - or have made them worse.

"We live in one of the most economically unequal countries in Europe, and not only has the 'trickle down' promise of market forces failed to deliver but a draconian asylum system consigns a small section of the population to unacceptable destitution."

The Archbishop of Canterbury, Rowan Williams, said: "It does not point the finger at any one agency alone. It challenges us all: churches, faith communities, development agencies and government, local and national."

The commissioners heard of individuals and entire communities living on the brink of despair and financial ruin, often within sight of staggering wealth. In one North Shields estate a survey found 87% of 142 households were paying doorstep lenders a third of their weekly income, at interest rates ranging from 33% to 2,000%.

South Oxhey, in Hertfordshire, was called "an island of deprivation in a sea of prosperity". The commissioners noted that there is no signpost until the entrance to the estate, which is deliberately cut off by tree planting from its wealthy neighbours.

"There is much material poverty, but there is a much greater poverty of spirit. There is a common perception in South Oxhey that nearby communities deride the residents of the estate, that 'They think we are scum'."

The report was launched in a shabby inner London church, St Michael's, in Camden Town. The parish priest, Nicholas Wheeler, said that although Camden was one of the most popular tourist attractions in the capital, it was also one of the most deprived council wards in the country, with the highest percentage of people with mental health needs in London. The church is open all day, and runs programmes with local Bengali children, homeless and elderly people, mentally ill people and asylum seekers.

The doors were left wide open during the launch, and a steady trickle of people came in off the noisy streets, some visibly annoyed to find their church full of bishops.

Several of the visitors were accompanied by their dogs. Mr Wheeler said: "To many homeless people their dogs are their real partners - to exclude them would be like telling somebody they could come in but their partners couldn't."

The problems identified were not confined to inner cities. The commission was struck by what Lady Kathleen Richardson, former president of the Methodist conference, who chaired the commission, called "tired and weary coastal towns" where people felt literally marginalised.

Lady Richardson said many things had changed dramatically in the 21 years since the last report: unemployment was down, inflation was down, decaying city centres had been transformed, educational standards were higher. "Yet people simply do not seem to believe it. Increased affluence has not led to increased happiness."

Key findings

Among the commission's findings are:

· For a just and equitable society, the gap between the very wealthy and the poor must be reduced

· Government should replace minimum wage with living wage

· Asylum seekers should be allowed to sustain themselves and contribute to society through paid work

· Poor should be involved in the solution to problems in their community

· Youth services should be properly funded, and statutory

· Faithful Cities: A call for celebration, vision and justice, jointly published by Methodist Publishing House and Church House Publishing, £9.99, available from 020 7898 1300, or www.chbookshop.co.uk